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I have that same "Error parsing XML: Entity not defined.." error when trying to use this extension's options in TB31.0.
I hope Philip Chee is able to provide a fix. In the meantime, users may want to try the extension 'Manually Sort Folders', which is also to be found on this website.
'Manually Sort Folders' seems to provide most of the features of 'Folderpane Tools' but,unlike it, does not allow one to specify 'Local Folders' as one's start folder (and thus to see the management page on TB start instead of an actual folder content).
'Folderpane Tools' allows that and is the reason I use it.
'Folderpane Tools' is also about half the size of 'Manually Sort Folders'.